Aviation Sector - New aircraft orders to have no near term impact - ICICI Sec

Reason for report: Sector update

aircraft deal is usually signed during this event and post the first two days, Airbus continues to dominate the South East Asian market with Go Air having signed a preliminary agreement for 72 additional A320 neos while Air Asia placed a firm order for 100 A321neos. The big SpiceJet deal remains in the offing which woul

14/07/2016 4:12:48 PM | Posted in Broking Firm Views - Sector Report read full news
India Quantitative - Foreign fund-flow tracker - Kotak Sec

KIE’s foreign fund-flow tracker gives a comprehensive view of the market-flow by listed funds into India and its emerging market (EM) peers. These market participants are further classified based on their investment styles (passive ETFs or active non-ETFs) in an attempt to understand the intent and sentiments governing the flows.

 

Key constituents

14/07/2016 4:02:31 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Price survey, production analysis and capacity details - Emkay Global

* In the North region, cement prices remained flat in NCR and there was a decline of Rs5- 30/bag in Rajasthan. Demand continues to remain weak in the region. Prices in Punjab and Haryana improved between Rs5-20/bag. Cement dealers expect some weakness in prices due to weak demand and monsoon season

* In the Central region, there was a price increase of Rs10-30/bag in most of the citie

14/07/2016 3:57:28 PM | Posted in Broking Firm Views - Sector Report read full news
Metal Sector - Metals 1QFY17 preview - Motilal Oswal

Metals 1QFY17 preview

Aluminum outperforms; Raising TP for Hindalco, JSW Steel, Nalco and Vedanta

* The outlook for base metal prices has improved. We are raising LME assumption for Zinc from USD1,850 to USD2,000 for FY18E and Aluminum from USD1,528/1,541to USD1,609/1,650 for FY17/18E, respectively.

14/07/2016 3:34:07 PM | Posted in Broking Firm Views - Sector Report read full news
Automobile Sector - Eye on EBITDA margin - Reliance sec

Result Expectations / Sector Preview

In 1QFY17, the leading four-wheeler players are expected to register contraction in EBIDTA margin as gross margin is expected to squeeze on rise in commodity prices. Tata Motors’ JLR business is likely to register normalized operating performance and hence overall performance of our coverage universe may see

14/07/2016 1:12:39 PM | Posted in Broking Firm Views - Sector Report read full news
Metals Sector- Strong Buying Seen In Metal Shares Worldwide - Dynamic Levels

Huge buying was noticed in the metal index after Alcoa reported its quarterly result which beat analyst expectations. Alcoa is the largest US Aluminum producer. The company announced it second quarter results on 11th July 2016. This has changed the overall sentiment for metal shares globally.

Nalco Share Price surged 12.37% intraday. The stock which was trading at Rs. 43.80 on 8th Jul

13/07/2016 6:00:51 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Refinancing risk to hurt bank earnings, growth - RCML

We attended a conference hosted by India Ratings & Research on the refinancing risk faced by corporates. The rating agency highlighted that 240 corporates with a total debt of Rs 11.8trn are exposed to significant refinancing risk during FY17. Corporates classified as stressed or with an elevated risk of refinancing are highly leveraged and need significant debt reduction (4x) and equity in

13/07/2016 5:37:51 PM | Posted in Broking Firm Views - Sector Report read full news
Sanitaryware industry Update - Testing times - ICICI Sec

Reason for report: Initiating coverage

The Indian sanitaryware industry, currently pegged at Rs35.6bn, is growing in single-digits over the past two years as compared to 13-15% CAGR over FY10- FY14, largely due to significant slowdown in the real estate sector. Further, lower potential for consumer shift from unbranded to branded products and significa

13/07/2016 5:10:07 PM | Posted in Broking Firm Views - Sector Report read full news
Q1FY17 Results Preview - Demand improves but earnings slow as margin declines - Emkay Global

Demand improves but earnings slow as margin declines

* Following a stupendous Q4FY16, corporate earnings in Q1FY17E is expected to weaken as the benefit of margin expansion wanes even while sales growth continues to improve. Demand impulses are seen improving due to higher revenue spending of the government and better realization from rise in commodity

13/07/2016 5:03:46 PM | Posted in Broking Firm Views - Sector Report read full news
FMCG Sector - Steady growth in earnings - Reliance sec

1QFY17 Results preview

We expect our FMCG coverage universe of 13 companies to report 10.5% growth in net sales and 19.6% growth in reported earnings for the quarter ended June’16. Excluding Nestle (base quarter was impacted due to ban on Maggi), the sector is expected to post 9.8% growth in revenues and 13.5% growth in earnings. Volume growth tr

13/07/2016 4:56:42 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector - Is the tide turning positive? - Motilal Oswal

Three companies receive USFDA inspection closure reports

* In the last one year, the BSE Healthcare Index has underperformed the market index by ~10%, primarily on the back of concerns about regulatory scrutiny on key Indian pharma players. The spate of FDA actions (regulatory) on Indian companies like SUNP, DRRD, CDH and IPCA over the past 12 months h

13/07/2016 4:27:51 PM | Posted in Broking Firm Views - Sector Report read full news
Capital goods and engineering Sector Update > Q1FY2017 earnings preview - Sharekhan

Q1FY2017 result expectations

Revenue traction healthy on adjusted basis:

The revenue performance of our capital goods and engineering universe is likely to be ~6-7% in Q1FY2017. Most of the coverage companies are likely to deliver double-digit topline growth, but Crompton Greaves (CGL) is expected to witness a drop in its topl

13/07/2016 4:24:17 PM | Posted in Broking Firm Views - Sector Report read full news
Profitability Likely to Improve on Higher Generation & Rise in Margins - Reliance sec

Result Expectations / Sector Preview

Power Sector witnessed decent development in growth of generation (9.0%) yoy in 1QFY17 on the back of higher coal off take. All-India generation in Apr-Jun’16 quarter rose by 9.0% to 296bn units (BU) yoy and thermal generation was up 13.3%. Hydro generation declined by 11.5% yoy due to decrease in reservoir l

13/07/2016 4:19:05 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector Update > Q1FY2017 earnings preview - Sharekhan

Q1FY2017 result expectations

Steady quarter due to favorable currency movements: During Q1FY2017, INR depreciated by 7% (YoY) against USD. A weaker INR will thus support revenue growth in US generics (and to some extent will help to mitigate pricing pressure). As far as Emerging Market (EM) currencies are concerned, YoY movements were unfavorable, but there has been

13/07/2016 4:11:09 PM | Posted in Broking Firm Views - Sector Report read full news
India Capital Goods Q1 Preview: Lackluster quarter; SELL LT, BHEL - RCML

India Capital Goods

Q1 Preview: Lackluster quarter; SELL LT, BHEL

The RCML capital goods universe had posted an above-expected Q4FY16 led by higher margins. In our view, margin gains are unsustainable given weakness in the investment cycle, which is likely to weigh on execution, while order inflows remain weak. Hence, we expe

13/07/2016 4:09:52 PM | Posted in Broking Firm Views - Sector Report read full news
India Metals & Mining - Q1 Preview: Ferrous to outperform non-ferrous plays - RCML

Q1FY17 is likely to be flat quarter for the RCML metals & mining universe with a 1.6%/0.3% YoY decline in sales/EBITDA. While MIP-led benefits (higher steel prices) and volume growth would drive profits for steel companies, a weak demand-supply scenario would hurt performance of mining stocks. Investors would closely monitor HNDL (and Utkal’s) results given its strong outperformance p

13/07/2016 4:05:09 PM | Posted in Broking Firm Views - Sector Report read full news
Banking Sector - Turning the corner, but a long turn - ICICI Sec

Q1FY17 performance of banks in our coverage universe is expected to show the following trends: a) sequentially abating slippages, yet elevated vis-à-vis the average of past couple of years, b) sequential improvement in margins on the back of abating slippages and declining cost of funds, and c) continuance of tepid business growth with retail segment gaining traction across the boar

13/07/2016 3:57:04 PM | Posted in Broking Firm Views - Sector Report read full news
Auto Sector Update > Q1FY2017 earnings preview - Sharekhan

Q1FY2017 result expectations

Auto universe (ex-TAMO) to post double-digit topline growth:

The automobile companies [ex-Tata Motors (TAMO)] are expected to report a healthy 12% YoY growth in revenues for Q1FY2017. Maruti Suzuki and Mahindra & Mahindra (M&M) are expected to lead the pack with a growth of

13/07/2016 3:47:21 PM | Posted in Broking Firm Views - Sector Report read full news
Metals Sector- Q1FY17 – Scope of earnings driven rerating appears limited - ICICI Sec

Q1FY17 witnessed significant earnings outperformance by the ferrous pack against the non-ferrous pack. With decent demand growth (Non-alloy steel demand growth for April/May 2016 was ~8%), and significant reduction in imports (~30% YoY), allowed 8-10% QoQ price hikes to stick allowing margin expansion across the board; highest improvement being observed in JSW Steel. Non-ferrous earnings suffer

13/07/2016 3:43:20 PM | Posted in Broking Firm Views - Sector Report read full news
Banking and NBFC Sector Update > Q1FY2017 earnings preview - Sharekhan

Q1FY2017 result expectations

Asset quality woes may continue; government, RBI measures positive: In Q1FY2017, while the gross non-performing assets (GNPA) levels may increase, the gross stress addition is likely to see improvement on a sequential basis before tapering off in the medium term. The government and the Reserve Bank of India (RBI) have take

13/07/2016 3:43:10 PM | Posted in Broking Firm Views - Sector Report read full news
Oil&Gas and Petrochemicals - Weak Q1FY17 hit by lower GRM, oil and gas price - ICICI Sec

Reuters’ Singapore gross refining margin (GRM) in Q1FY17 is down 38% YoY and 35% QoQ. Oil prices in Q1FY17 have recovered from lows of Q4FY16 and are therefore up 33% QoQ but down 26% YoY. Crude and product inventory gains due to oil price recovery would partly neutralise the hit from weaker GRM for oil marketing companies (OMCs) and Reliance Industries (RIL) in Q1FY17. We estimate RIL&rs

11/07/2016 5:45:25 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Robust quarter; BUY on seasonal dips - ICICI Securities

We expect cement companies under our coverage to report 6.6%, 33% and 55% YoY revenue, EBITDA and PAT growth respectively during Q1FY17. Volume growth for companies under our coverage is expected to be 8% YoY backed by capacity expansions and delay in onset of monsoon. We expect ~5% QoQ (still down 1% YoY) improvement in average realisation led by sharp increases (10-15% QoQ) in North and Centr

11/07/2016 4:55:28 PM | Posted in Broking Firm Views - Sector Report read full news
India Consumer - Millionaire club spirit brands – key consumption trends - RCML

Based on the recently released data by Drinks International for millionaire club brands, we highlight the following underlying consumption trends (in volume terms) in India’s spirits industry: (1) Consumption for millionaire brands within the whisky category grew 5% in 2015 (2014: 7%). (2) At the company level, Pernod Ricard posted highest growth of 17% YoY led by Imperial Blue. (3) For U

11/07/2016 3:58:20 PM | Posted in Broking Firm Views - Sector Report read full news
Aviation Sector - Focus to remain on seat capacity growth - ICICI Sec

crude environment continue to prevent meaningful fare hikes. The highlight will be the ramp up in induction of the neos by IndiGo as it embarks on its ambitious capacity expansion. This is best understood from the highest sequential growth in the Available Seat Kilometres (ASKs) for IndiGo (8%) compared to SJet (3%) and Jet (~flat). The focus for SpiceJet (SJet) and Jet Airways (Jet) will be st

11/07/2016 3:51:05 PM | Posted in Broking Firm Views - Sector Report read full news
Auto and Auto Ancillaries - Q1FY17 Results Preview - Emkay Global

Automobiles

* Q1 Result Expectation:

We expect EIM (+28%), TVSL (+17%) and MSS (+15%) to report the highest revenue growth in our coverage universe. We expect highest EBITDA growth for TVS (+49%), EIM (+41%), HMCL (+46%) and MSS/EXID (+19%). We expect reported numbers to be volatile given the implementation o

9/07/2016 3:04:19 PM | Posted in Broking Firm Views - Sector Report read full news